Previous Page Next Page Prior Version PDF Version Table of Content DFARS Home Page

(Revised June 21, 2005)

 

 



 252.247- 7000 Hardship Conditions
 252.247- 7001 Price Adjustment
 252.247- 7002 Revision of Prices
 252.247- 7003 Reserved
 252.247- 7004 Indefinite Quantities--Fixed Charges
 252.247- 7005 Indefinite Quantities--No Fixed Charges
 252.247- 7006 Removal of Contractor's Employees
 252.247- 7007 Liability and Insurance
 252.247- 7008 Evaluation of Bids
 252.247- 7009 Award
 252.247- 7010 Scope of Contract
 252.247- 7011 Period of Contract
 252.247- 7012 Ordering Limitation
 252.247- 7013 Contract Areas of Performance
 252.247- 7014 Demurrage
 252.247- 7015 Requirements
 252.247- 7016 Contractor Liability for Loss or Damage
 252.247- 7017 Erroneous Shipments
 252.247- 7018 Subcontracting
 252.247- 7019 Drayage
 252.247- 7020 Additional Services
 252.247- 7021 Returnable Containers Other Than Cylinders
 252.247- 7022 Representation of Extent of Transportation by Sea
 252.247- 7023 Transportation of Supplies by Sea
 252.247- 7024 Notification of Transportation of Supplies by Sea
 252.247- 7025 Reflagging or Repair Work



252.247-7000  Hardship Conditions.

As prescribed in 247.270-6(a), use the following clause:

 

HARDSHIP CONDITIONS (AUG 2000)

 

      (a)  If the Contractor finds unusual ship, dock, or cargo conditions associated with loading or unloading a particular cargo, that will work a hardship on the Contractor if loaded or unloaded at the basic commodity rates, the Contractor shall--

 

              (1)  Notify the Contracting Officer before performing the work, if feasible, but no later than the vessel sailing time; and

 

              (2)  Submit any associated request for price adjustment to the Contracting Officer within 10 working days of the vessel sailing time.

 

      (b)  Unusual conditions include, but are not limited to, inaccessibility of place of stowage to the ship's cargo gear, side port operations, and small quantities of cargo in any one hatch.

 

      (c)  The Contracting Officer will investigate the conditions promptly after receiving the notice.  If the Contracting Officer finds that the conditions are unusual and do materially affect the cost of loading or unloading, the Contracting Officer will authorize payment at the applicable man-hour rates set forth in the schedule of rates of this contract.

 

(End of clause)

 

252.247-7001  Price Adjustment.

As prescribed in 247.270-6(b), use the following clause:

 

PRICE ADJUSTMENT (JAN 1997)

 

      (a)  The Contractor warrants that the prices set forth in this contract—

 

              (1)  Are based upon the wage rates, allowances, and conditions set forth in the collective bargaining agreements between the Contractor and its employees, in effect as of (insert date), and which are generally applicable to the ports where work under this contract is performed;

 

              (2)  Apply to operations by the Contractor on non-Government work as well as under this contract; and

 

              (3)  Do not include any allowance for cost increases that may—

 

                    (i)  Become effective under the terms of the collective bargaining agreements after the date in paragraph (a)(1) of this clause; or

 

                    (ii)  Result from modification of the collective bargaining agreements after the date in paragraph (a)(1).

 

      (b)  The Contractor shall notify the Contracting Officer within 60 days of receipt of notice of any changes (increase or decrease) in the wage rates, allowances, fringe benefits, and conditions that apply to its direct labor employees, if the changes—

 

              (1)  Are pursuant to the provisions of the collective bargaining agreements; or

 

              (2)  Are a result of effective modifications to the agreements; and

 

              (3)  Would change the Contractor's costs to perform this contract.

 

      (c)  The Contractor shall include in its notification—

 

              (1)  A proposal for an adjustment in the contract commodity, activity, or work-hour prices; and

 

              (2)  Data, in such form as the Contracting Officer may require, explaining the—

 

                    (i)  Causes;

 

                    (ii)  Effective date; and

 

                    (iii)  Amount of the increase or decrease in the Contractor's proposal for the adjustment.

 

      (d)  Promptly upon receipt of any notice and data described in paragraph (c), the Contractor and the Contracting Officer shall negotiate an adjustment in the existing contract commodity, activity, or man-hour prices.  However, no upward adjustment of the existing commodity, activity, or work-hour prices will be allowed in excess of ____ percent per year, except as provided in the Changes clause of this contract.

 

              (1)  Changes in the contract prices shall reflect, in addition to the direct and variable indirect labor costs, the associated changes in the costs for social security, unemployment compensation, taxes, and workman's compensation insurance.

 

              (2)  There will be no adjustment to increase the dollar amount allowances of the Contractor's profit.

 

              (3)  The agreed upon adjustment, its effective date, and the revised commodity, activity, or work-hour prices for services set forth in the schedule of rates, shall be incorporated in the contract by supplemental agreement.

 

      (e)  There will be no adjustment for any changes in the quantities of labor that the Contractor contemplated for each specific commodity, except as may result from modifications of the collective bargaining agreements.  For the purpose of administering this clause, the Contractor shall submit to the Contracting Officer, within five days after award, the accounting data and computations the Contractor used to determine its estimated efficiency rate in the performance of this contract, to include the Contractor's computation of the costs apportioned for each rate set forth in the schedule of rates.

 

      (f)  Failure of the parties to agree to an adjustment under this clause will be deemed to be a dispute concerning a question of fact within the meaning of the Disputes clause of this contract.  The Contractor shall continue performance pending agreement on, or determination of, any such adjustment and its effective date.

 

      (g)  The Contractor shall include with the final invoice submitted under this contract a statement that the Contractor has not experienced a decrease in rates of pay for labor, or that the Contractor has given notice of all such decreases in compliance with paragraph (b) of this clause.

 

(End of clause)

 

252.247-7002  Revision of Prices.

As prescribed in 247.270-6(c), use the following clause:

 

REVISION OF PRICES (DEC 1991)

 

      (a)  Definition.  “Wage adjustment,” as used in this clause, means a change in the wages, salaries, or other terms or conditions of employment which—

 

              (1)  Substantially affects the cost of performing this contract;

 

              (2)  Is generally applicable to the port where work under this contract is performed; and

 

              (3)  Applies to operations by the Contractor on non-Government work as well as to work under this contract.

 

      (b)  General.  The prices fixed in this contract are based on wages and working conditions established by collective bargaining agreements, and on other conditions in effect on the date of this contract.  The Contracting Officer and the Contractor may agree to increase or decrease such prices in accordance with this clause.

 

      (c)  Demand for negotiation.

 

              (1)  At any time, subject to the limitations specified in this clause, either the Contracting Officer or the Contractor may deliver to the other a written demand that the parties negotiate to revise the prices under this contract.

 

              (2)  No such demand shall be made before 90 days after the date of this contract, and thereafter neither party shall make a demand having an effective date within 90 days of the effective date of any prior demand.  However, this limitation does not apply to a wage adjustment during the 90 day period.

 

              (3)  Each demand shall specify a date (the same as or subsequent to the date of the delivery of the demand) as to when the revised prices shall be effective.  This date is the effective date of the price revision.

 

                    (i)  If the Contractor makes a demand under this clause, the demand shall briefly state the basis of the demand and include the statements and data referred to in paragraph (d) of this clause.

 

                    (ii)  If the demand is made by the Contracting Officer, the Contractor shall furnish the statements and data within 30 days of the delivery of the demand.

 

      (d)  Submission of data.  At the times specified in paragraphs (c)(3)(i) and (ii) of this clause, the Contractor shall submit—

 

              (1)  A new estimate and breakdown of the unit cost and the proposed prices for the services the Contractor will perform under this contract after the effective date of the price revision, itemized to be consistent with the original negotiations of the contract;

 

              (2)  An explanation of the difference between the original (or last preceding) estimate and the new estimate;

 

              (3)  Such relevant operating data, cost records, overhead absorption reports, and accounting statements as may be of assistance in determining the accuracy and reliability of the new estimate;

 

              (4)  A statement of the actual costs of performance under this contract to the extent that they are available at the time of the negotiation of the revision of prices under this clause; and

 

              (5)  Any other relevant data usually furnished in the case of negotiations of prices under a new contract.  The Government may examine and audit the Contractor's accounts, records, and books as the Contracting Officer considers necessary.

 

      (e)  Negotiations.

 

              (1)  Upon the filing of the statements and data required by paragraph (d) of this clause, the Contractor and the Contracting Officer shall negotiate promptly in good faith to agree upon prices for services the Contractor will perform on and after the effective date of the price revision.

 

              (2)  If the prices in this contract were established by competitive negotiation, they shall not be revised upward unless justified by changes in conditions occurring after the contract was awarded.

 

              (3)  The agreement reached after each negotiation will be incorporated into the contract by supplemental agreement.

 

      (f)  Disagreements.  If, within 30 days after the date on which statements and data are required pursuant to paragraph (c) of this clause, the Contracting Officer and the Contractor fail to agree to revised prices, the failure to agree shall be resolved in accordance with the Disputes clause of this contract.  The prices fixed by the Contracting Officer will remain in effect for the balance of the contract, and the Contractor shall continue performance.

 

      (g)  Retroactive changes in wages or working conditions.

 

              (1)  In the event of a retroactive wage adjustment, the Contractor or the Contracting Officer may request an equitable adjustment in the prices in this contract.

 

              (2)  The Contractor shall request a price adjustment within 30 days of any retroactive wage adjustment.  The Contractor shall support its request with—

 

                    (i)  An estimate of the changes in cost resulting from the retroactive wage adjustment;

 

                    (ii)  Complete information upon which the estimate is based; and

 

                    (iii)  A certified copy of the collective bargaining agreement, arbitration award, or other document evidencing the retroactive wage adjustment.

 

              (3)  Subject to the limitation in paragraph (g)(2) of this clause as to the time of making a request, completion or termination of this contract shall not affect the Contractor's right under paragraph (g) of this clause.

 

              (4)  In case of disagreement concerning any question of fact, including whether any adjustment should be made, or the amount of such adjustment, the disagreement will be resolved in accordance with the Disputes clause of this contract.

 

              (5)  The Contractor shall notify the Contracting Officer in writing of any request by or on behalf of the employees of the Contractor which may result in a retroactive wage adjustment.  The notice shall be given within 20 days after the request, or if the request occurs before contract execution, at the time of execution.

 

(End of clause)

 

252.247-7003  Reserved.

 

252.247-7004  Indefinite Quantities--Fixed Charges.

As prescribed in 247.270-6(d), use the following clause:

 

INDEFINITE QUANTITIES--FIXED CHARGES (DEC 1991)

 

The amount of work and services the Contractor may be ordered to furnish shall be the amount the Contracting Officer may order from time to time.  In any event, the Government is obligated to compensate the Contractor the monthly lump sum specified in the Schedule entitled Fixed Charges, for each month or portion of a month the contract remains in effect.

 

(End of clause)

 

252.247-7005  Indefinite Quantities--No Fixed Charges.

As prescribed in 247.270-6(e), use the following clause:

 

INDEFINITE QUANTITIES--NO FIXED CHARGES (DEC 1991)

 

The amount of work and services the Contractor may be ordered to furnish shall be the amount the Contracting Officer may order from time to time.  In any event, the Government shall order, during the term of this contract, work or services having an aggregate value of not less than $100.

 

(End of clause)

 

252.247-7006  Removal of Contractor's Employees.

As prescribed in 247.270-6(f), use the following clause:

 

REMOVAL OF CONTRACTOR'S EMPLOYEES (DEC 1991)

 

The Contractor agrees to use only experienced, responsible, and capable people to perform the work.  The Contracting Officer may require that the Contractor remove from the job, employees who endanger persons or property, or whose continued employment under this contract is inconsistent with the interest of military security.

 

(End of clause)

 

252.247-7007  Liability and Insurance.

As prescribed in 247.270-6(g), use the following clause:

 

LIABILITY AND INSURANCE (DEC 1991)

 

      (a)  The Contractor shall be—

 

              (1)  Liable to the Government for loss or damage to property, real and personal, owned by the Government or for which the Government is liable;

 

              (2)  Responsible for, and hold the Government harmless from, loss of or damage to property not included in paragraph (a)(1); and

 

              (3)  Responsible for, and hold the Government harmless from, bodily injury and death of persons, resulting either in whole or in part from the negligence or fault of the Contractor, its officers, agents, or employees in the performance of work under this contract.

 

      (b)  For the purpose of this clause, all cargo loaded or unloaded under this contract is agreed to be property owned by the Government or property for which the Government is liable.

 

              (1)  The amount of the loss or damage as determined by the Contracting Officer will be withheld from payments otherwise due the Contractor.

 

              (2)  Determination of liability and responsibility by the Contracting Officer will constitute questions of fact within the meaning of the Disputes clause of this contract.

 

      (c)  The general liability and responsibility of the Contractor under this clause are subject only to the following specific limitations.  The Contractor is not responsible to the Government for, and does not agree to hold the Government harmless from, loss or damage to property or bodily injury to or death of persons if—

 

              (1)  The unseaworthiness of the vessel, or failure or defect of the gear or equipment furnished by the Government, contributed jointly with the fault or negligence of the Contractor in causing such damage, injury, or death; and

 

                    (i)  The Contractor, his officers, agents, and employees, by the exercise of due diligence, could not have discovered such unseaworthiness or defect of gear or equipment; or

 

                    (ii)  Through the exercise of due diligence could not otherwise have avoided such damage, injury, or death.

 

              (2)  The damage, injury, or death resulted solely from an act or omission of the Government or its employees, or resulted solely from proper compliance by officers, agents, or employees of the Contractor with specific directions of the Contracting Officer.

 

      (d)  The Contractor shall at its own expense acquire and maintain insurance during the term of this contract, as follows—

 

              (1)  Standard workmen's compensation and employer's liability insurance and longshoremen's and harbor workers' compensation insurance, or such of these as may be proper under applicable state or Federal statutes.

 

                    (i)  The Contractor may, with the prior approval of the Contracting Officer, be a self-insurer against the risk of this paragraph (d)(1).

 

                    (ii)  This approval will be given upon receipt of satisfactory evidence that the Contractor has qualified as a self-insurer under applicable provision of law.

 

              (2)  Bodily injury liability insurance in an amount of not less than $300,000 on account of any one occurrence.

 

              (3)  Property damage liability insurance (which shall include any and all property, whether or not in the care, custody, or control of the Contractor) in an amount of not less than $300,000 for any one occurrence.

 

      (e)  Each policy shall provide, by appropriate endorsement or otherwise, that cancellation or material change in the policy shall not be effective until after a 30 day written notice is furnished the Contracting Officer.

 

      (f)  The Contractor shall furnish the Contracting Officer with satisfactory evidence of the insurance required in paragraph (d) before performance of any work under this contract.

 

      (g)  The Contractor shall, at its own cost and expense, defend any suits, demands, claims, or actions, in which the United States might be named as a co-defendant of the Contractor, resulting from the Contractor's performance of work under this contract.  This requirement is without regard to whether such suit, demand, claim, or action was the result of the Contractor's negligence.  The Government shall have the right to appear in such suit, participate in defense, and take such actions as may be necessary to protect the interest of the United States.

 

      (h)  It is expressly agreed that the provisions in paragraphs (d) through (g) of this clause shall not in any manner limit the liability or extend the liability of the Contractor as provided in paragraphs (a) through (c) of this clause.

 

      (i)  The Contractor shall—

 

              (1)  Equitably reimburse the Government if the Contractor is indemnified, reimbursed, or relieved of any loss or damage to Government property;

 

              (2)  Do nothing to prevent the Government's right to recover against third parties for any such loss or damage; and

 

              (3)  Furnish the Government, upon the request of the Contracting Officer, at the Government's expense, all reasonable assistance and cooperation in obtaining recovery, including the prosecution of suit and the execution of instruments of assignment in favor of the Government.

 

(End of clause)

 

252.247-7008  Evaluation of Bids.

As prescribed in 247.271-4(a), use the following provision:

 

EVALUATION OF BIDS (DEC 1991)

 

      (a)  The Government will evaluate bids on the basis of total aggregate price of all items within an area of performance under a given schedule.

 

              (1)  An offeror must bid on all items within a specified area of performance for a given schedule.  Failure to do so shall be cause for rejection of the bid for that area of performance of that Schedule.  If there is to be no charge for an item, an entry such as “No Charge,” or the letters “N/C” or “0,” must be made in the unit price column of the Schedule.

 

              (2)  Any bid which stipulates minimum charges or graduated prices for any or all items shall be rejected for that area of performance within the Schedule.

 

      (b)  In addition to other factors, the Contracting Officer will evaluate bids on the basis of advantages or disadvantages to the Government that might result from making more than one award (multiple awards).

 

              (1)  In making this evaluation, the Contracting Officer will assume that the administrative cost to the Government for issuing and administering each contract awarded under this solicitation would be $500.

 

              (2)  Individual awards will be for the items and combinations of items which result in the lowest aggregate cost to the Government, including the administrative costs in paragraph (b)(1).

 

      (c)  When drayage is necessary for the accomplishment of any item in the bid schedule, the Offeror shall include in the unit price any costs for bridge or ferry tolls, road use charges or similar expenses.

 

      (d)  Unless otherwise provided in this solicitation, the Offeror shall state prices in amounts per hundred pounds on gross or net weights, whichever is applicable.  All charges shall be subject to, and payable on, the basis of 100 pounds minimum weight for unaccompanied baggage and a 500 pound minimum weight for household goods, net or gross weight, whichever is applicable.

 

(End of provision)

 

ALTERNATE I (DEC 1991)

As prescribed in 247.271-4(a), add the following paragraph (e) to the basic clause:

 

      (e)  Notwithstanding paragraph (a), when “additional services” are added to any schedule, such “additional services” items will not be considered in the evaluation of bids.

 

252.247-7009  Award.

As prescribed in 247.271-4(b), use the following provision:

 

AWARD (DEC 1991)

 

      (a)  The Government shall make award by area to the qualified low bidder under each of the specified schedules to the extent of the bidder's stated guaranteed daily capability as provided in this solicitation and the Estimated Quantities Schedule.

 

      (b)  The Government reserves the right to make an award of two or more areas to a single bidder if such award will result in an overall lower estimated cost to the Government.

 

      (c)  The Government also reserves the right to award additional contracts, as a result of this solicitation, to the extent necessary to meet its estimated maximum daily requirements.

 

(End of provision)

 

252.247-7010  Scope of Contract.

As prescribed in 247.271-4(d), use the following clause:

 

SCOPE OF CONTRACT (DEC 1991)

 

      (a)  The Contractor shall furnish services and materials for the preparation of personal property (including servicing of appliances) for movement or storage, drayage and related services.  Unless otherwise indicated in the Schedule, the Contractor shall—

 

              (1)  Furnish all materials except Government-owned containers (Federal Specification PPP-B-580), all equipment, plant and labor; and

 

              (2)  Perform all work in accomplishing containerization of personal property for overseas or domestic movement or storage, including—

 

                    (i)  Stenciling;

 

                    (ii)  Cooperage;

 

                    (iii)  Drayage of personal property in connection with other services;

 

                    (iv)  Decontainerization of inbound shipments of personal property; and

 

                    (v)  The handling of shipments into and out of the Contractor's facility.

 

      (b)  Excluded from the scope of this contract is the furnishing of like services or materials which are provided incident to complete movement of personal property when purchased by the Through Government Bill of Lading or other method/mode of shipment or property to be moved under the Do-It-Yourself moving program or otherwise moved by the owner.

 

(End of clause)

 

252.247-7011  Period of Contract.

As prescribed in 247.271-4(e), use the following clause:

 

PERIOD OF CONTRACT (OCT 2001)

 

      (a)  This contract begins January 1, ____, and ends December 31, ____, both dates inclusive.  Any work ordered before, and not completed by the expiration date shall be governed by the terms of this contract.

 

      (b)  The Government will not place new orders under this contract that require that performance commence more than 15 days after the expiration date.

 

      (c)  The Government may place orders required for the completion of services (for shipments in the Contractor's possession) for 180 days past the expiration date.

 

(End of clause)

 

252.247-7012  Ordering Limitation.

As prescribed in 247.271-4(g), use the following clause:

 

ORDERING LIMITATION (DEC 1991)

 

      (a)  The Government will place orders for items of supplies or services with the contractor awarded the initial contract to the extent of the contractor's guaranteed maximum daily capability.  However, the contractor may accept an additional quantity in excess of its capability to accommodate a single order.

 

      (b)  Orders for additional requirements will be placed in a like manner with the next higher contractor to the extent of its guaranteed maximum daily capability.  The Government will repeat this procedure until its total daily requirement is fulfilled.

 

      (c)  In the event the procedure in paragraphs (a) and (b) does not fulfill the Government's total daily requirement, the Government may offer additional orders under the contract to contractors without regard to their guaranteed maximum daily capability.

 

(End of clause)

 

252.247-7013  Contract Areas of Performance.

As prescribed in 247.271-4(h), use the following clause and complete paragraph (b) by defining each area of performance as required (see 247.271-2(b)):

 

CONTRACT AREAS OF PERFORMANCE (DEC 1991)

 

      (a)  The Government will consider all areas of performance described in paragraph (b) as including the Contractor's facility, regardless of geographical location.

 

      (b)  The Contractor shall perform services within the following defined areas of performance, which include terminals identified therein:  ________________________.

 

(End of clause)

 

252.247-7014  Demurrage.

As prescribed in 247.271-4(i), use the following clause:

 

DEMURRAGE (DEC 1991)

 

The Contractor shall be liable for all demurrage, detention, or other charges as a result of its failure to load or unload trucks, freight cars, freight terminals, vessel piers, or warehouses within the free time allowed under applicable rules and tariffs.

 

(End of clause)

 

252.247-7015  Requirements.

As prescribed in 216.506(d), substitute the following paragraph (f) for paragraph (f) of the basic clause at FAR 52.216-21.

 

ALTERNATE I (DEC 1991)

 

      (f)  Orders issued during the effective period of this contract and not completed within that time shall be completed by the Contractor within the time specified in the order.  The rights and obligations of the Contractor and the Government for those orders shall be governed by the terms of this contract to the same extent as if completed during the effective period.

 

252.247-7016  Contractor Liability for Loss or Damage.

As prescribed in 247.271-4(k), use the following clause:

 

CONTRACTOR LIABILITY FOR LOSS OR DAMAGE (DEC 1991)

 

      (a)  Definitions.  As used in this clause—

 

              “Article” means any shipping piece or package and its contents.

 

              “Schedule” means the level of service for which specific types of traffic apply as described in DoD 4500.34-R, Personal Property Traffic Management Regulation.

 

      (b)  For shipments picked up under Schedule I, Outbound Services, or delivered under Schedule II, Inbound Services—

 

              (1)  If notified within one year after delivery that the owner has discovered loss or damage to the owner's property, the Contractor agrees to indemnify the Government for loss or damage to the property which arises from any cause while it is in the Contractor's possession.  The Contractor's liability is—

 

                    (i)  Non-negligent damage.  For any cause, other than the Contractor's negligence, indemnification shall be at a rate not to exceed sixty cents per pound per article.

 

                    (ii)  Negligent damage.  When loss or damage is caused by the negligence of the Contractor, the liability is for the full cost of satisfactory repair or for the current replacement value of the article.

 

              (2)  The Contractor shall make prompt payment to the owner of the property for any loss or damage for which the Contractor is liable.

 

              (3)  In the absence of evidence or supporting documentation which places liability on a carrier or another contractor, the destination contractor shall be presumed to be liable for the loss or damage, if timely notified.

 

      (c)  For shipments picked up or delivered under Schedule III, Intra-City and Intra-Area—

 

              (1)  If notified of loss or damage within 75 days following delivery, the Contractor agrees to indemnify the Government for loss or damage to the owner's property.

 

              (2)  The Contractor's liability shall be for the full cost of satisfactory repair, or for the current replacement value of the article less depreciation, up to a maximum liability of $1.25 per pound times the net weight of the shipment.

 

              (3)  The Contractor has full salvage rights to damaged items which are not repairable and for which the Government has received compensation at replacement value.

 

(End of clause)

 

252.247-7017  Erroneous Shipments.

As prescribed in 247.271-4(l), use the following clause:

 

ERRONEOUS SHIPMENTS (DEC 1991)

 

      (a)  The Contractor shall—

 

              (1)  Forward to the rightful owner, articles of personal property inadvertently packed with goods of other than the rightful owner.

 

              (2)  Ensure that all shipments are stenciled correctly.  When a shipment is sent to an incorrect address due to incorrect stenciling by the Contractor, the Contractor shall forward it to its rightful owner.

 

              (3)  Deliver to the designated air or surface terminal all pieces of a shipment, in one lot, at the same time.  The Contractor shall forward to the owner any pieces of one lot not included in delivery, and remaining at its facility after departure of the original shipment.

 

      (b)  Forwarding under paragraph (a) shall be—

 

              (1)  With the least possible delay;

 

              (2)  By a mode of transportation selected by the Contracting Officer; and

 

              (3)  At the Contractor's expense.

 

(End of clause)

 

252.247-7018  Subcontracting.

As prescribed in 247.271-4(m), use the following clause:

 

SUBCONTRACTING (DEC 1991)

 

The Contractor shall not subcontract without the prior written approval of the Contracting Officer.  The facilities of any approved subcontractor shall meet the minimum standards required by this contract.

 

(End of clause)

 

252.247-7019  Drayage.

As prescribed in 247.271-4(n), use the following clause:

 

DRAYAGE (DEC 1991)

 

      (a)  Drayage included for Schedule I, Outbound, applies in those instances when a shipment requires drayage to an air, water, or other terminal for onward movement after completion of shipment preparation by the Contractor.  Drayage not included is when it is being moved from a residence or other pickup point to the Contractor's warehouse for onward movement by another freight company, carrier, etc.

 

      (b)  Drayage included for Schedule II, Inbound, applies in those instances when shipment is delivered, as ordered, from a destination Contractor's facility or other destination point to the final delivery point.  Drayage not included is when shipment or partial removal of items from shipment is performed and prepared for member's pickup at destination delivery point.

 

      (c)  The Contractor will reposition empty Government containers—

 

              (1)  Within the area of performance;

 

              (2)  As directed by the Contracting Officer; and

 

              (3)  At no additional cost to the Government.

 

(End of clause)

 

252.247-7020  Additional Services.

As prescribed in 247.271-4(o), use the following clause:

 

ADDITIONAL SERVICES (AUG 2000)

 

The Contractor shall provide additional services not included in the Schedule, but required for satisfactory completion of the services ordered under this contract, at a rate comparable to the rate for like services as contained in tenders on file with the Military Traffic Management Command in effect at time of order.

 

(End of clause)

 

252.247-7021  Returnable Containers Other Than Cylinders.

As prescribed in 247.305-70, use the following clause:

 

RETURNABLE CONTAINERS OTHER THAN CYLINDERS (MAY 1995)

 

      (a)  “Returnable container,” as used in this clause, includes reels, spools, drums, carboys, liquid petroleum gas containers, and other returnable containers when the Contractor retains title to the container. 

 

      (b)  Returnable containers shall remain the Contractor's property but shall be loaned without charge to the Government for a period of ____ (insert number of days) calendar days after delivery to the f.o.b. point specified in the contract.  Beginning with the first day after the loan period expires, to and including the day the containers are delivered to the Contractor (if the original delivery was f.o.b. origin) or are delivered or are made available for delivery to the Contractor's designated carrier (if the original delivery was f.o.b. destination), the Government shall pay the Contractor a rental of $_______ (insert dollar amount for rental) per container per day, computed separately for containers for each type, size, and capacity, and for each point of delivery named in the contract.   No rental shall accrue to the Contractor in excess of the replacement value per container specified in paragraph (c) of this clause.

 

      (c)  For each container lost or damaged beyond repair while in the Government's possession, the Government shall pay to the Contractor the replacement value as follows, less the allocable rental paid for that container:

 

(Insert the container types, sizes, capacities, and associated replacement values.)

These containers shall become Government property.

 

      (d)  If any lost container is located within _____ (insert number of days) calendar days after payment by the Government, it may be returned to the Contractor by the Government, and the Contractor shall pay to the Government the replacement value, less rental computed in accordance with paragraph (b) of this clause, beginning at the expiration of the loan period specified in paragraph (b) of this clause, and continuing to the date on which the container was delivered to the Contractor.

 

(End of clause)

 

252.247-7022  Representation of Extent of Transportation by Sea.

As prescribed in 247.573(a), use the following provision:

 

REPRESENTATION OF EXTENT OF TRANSPORTATION BY SEA (AUG 1992)

 

      (a)  The Offeror shall indicate by checking the appropriate blank in paragraph (b) of this provision whether transportation of supplies by sea is anticipated under the resultant contract.  The term “supplies” is defined in the Transportation of Supplies by Sea clause of this solicitation.

 

      (b)  Representation.  The Offeror represents that it—

 

              _____ Does anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation.

 

              _____ Does not anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation.

 

      (c)  Any contract resulting from this solicitation will include the Transportation of Supplies by Sea clause.  If the Offeror represents that it will not use ocean transportation, the resulting contract will also include the Defense FAR Supplement clause at 252.247-7024, Notification of Transportation of Supplies by Sea.

 

(End of provision)

 

252.247-7023  Transportation of Supplies by Sea.

As prescribed in 247.573(b)(1), use the following clause:

 

TRANSPORTATION OF SUPPLIES BY SEA (MAY 2002)

 

      (a)  Definitions.  As used in this clause—

 

              (1)  “Components” means articles, materials, and supplies incorporated directly into end products at any level of manufacture, fabrication, or assembly by the Contractor or any subcontractor.

 

              (2)  “Department of Defense” (DoD) means the Army, Navy, Air Force, Marine Corps, and defense agencies.

 

              (3)  “Foreign flag vessel” means any vessel that is not a U.S.-flag vessel.

 

              (4)  “Ocean transportation” means any transportation aboard a ship, vessel, boat, barge, or ferry through international waters.

 

              (5)  “Subcontractor” means a supplier, materialman, distributor, or vendor at any level below the prime contractor whose contractual obligation to perform results from, or is conditioned upon, award of the prime contract and who is performing any part of the work or other requirement of the prime contract. 

 

              (6)  “Supplies” means all property, except land and interests in land, that is clearly identifiable for eventual use by or owned by the DoD at the time of transportation by sea.

 

                    (i)  An item is clearly identifiable for eventual use by the DoD if, for example, the contract documentation contains a reference to a DoD contract number or a military destination.

 

                    (ii)  “Supplies” includes (but is not limited to) public works; buildings and facilities; ships; floating equipment and vessels of every character, type, and description, with parts, subassemblies, accessories, and equipment; machine tools; material; equipment; stores of all kinds; end items; construction materials; and components of the foregoing.

 

              (7)  “U.S.-flag vessel” means a vessel of the United States or belonging to the United States, including any vessel registered or having national status under the laws of the United States.

 

      (b)(1)  The Contractor shall use U.S.-flag vessels when transporting any supplies by sea under this contract.

 

              (2)  A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if—

 

                    (i)  This contract is a construction contract; or

 

                    (ii)  The supplies being transported are—

 

                            (A)  Noncommercial items; or

 

                            (B)  Commercial items that—

 

                                    (1)  The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor does not add value to items that it subcontracts for f.o.b. destination shipment);

 

                                    (2)  Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in humanitarian or peacekeeping operations; or

 

                                    (3)  Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance with 10 U.S.C. 2643.

 

      (c)  The Contractor and its subcontractors may request that the Contracting Officer authorize shipment in foreign-flag vessels, or designate available U.S.-flag vessels, if the Contractor or a subcontractor believes that—

 

              (1)  U.S.-flag vessels are not available for timely shipment;

 

              (2)  The freight charges are inordinately excessive or unreasonable; or

 

              (3)  Freight charges are higher than charges to private persons for transportation of like goods.

 

      (d)  The Contractor must submit any request for use of other than U.S.-flag vessels in writing to the Contracting Officer at least 45 days prior to the sailing date necessary to meet its delivery schedules.  The Contracting Officer will process requests submitted after such date(s) as expeditiously as possible, but the Contracting Officer's failure to grant approvals to meet the shipper's sailing date will not of itself constitute a compensable delay under this or any other clause of this contract.  Requests shall contain at a minimum—

 

              (1)  Type, weight, and cube of cargo;

 

              (2)  Required shipping date;

 

              (3)  Special handling and discharge requirements;

 

              (4)  Loading and discharge points;

 

              (5)  Name of shipper and consignee;

 

              (6)  Prime contract number; and

 

              (7)  A documented description of efforts made to secure U.S.-flag vessels, including points of contact (with names and telephone numbers) with at least two U.S.-flag carriers contacted.  Copies of telephone notes, telegraphic and facsimile message or letters will be sufficient for this purpose.

 

      (e)  The Contractor shall, within 30 days after each shipment covered by this clause, provide the Contracting Officer and the Maritime Administration, Office of Cargo Preference, U.S. Department of Transportation, 400 Seventh Street SW, Washington, DC  20590, one copy of the rated on board vessel operating carrier's ocean bill of lading, which shall contain the following information:

 

              (1)  Prime contract number;

 

              (2)  Name of vessel;

 

              (3)  Vessel flag of registry;

 

              (4)  Date of loading;

 

              (5)  Port of loading;

 

              (6)  Port of final discharge;

 

              (7)  Description of commodity;

 

              (8)  Gross weight in pounds and cubic feet if available;

 

              (9)  Total ocean freight in U.S. dollars; and

 

              (10)  Name of steamship company.

 

      (f)  The Contractor shall provide with its final invoice under this contract a representation that to the best of its knowledge and belief—

 

              (1)  No ocean transportation was used in the performance of this contract;

 

              (2)  Ocean transportation was used and only U.S.-flag vessels were used for all ocean shipments under the contract;

 

              (3)  Ocean transportation was used, and the Contractor had the written consent of the Contracting Officer for all non-U.S.-flag ocean transportation; or

 

              (4)  Ocean transportation was used and some or all of the shipments were made on non-U.S.-flag vessels without the written consent of the Contracting Officer.  The Contractor shall describe these shipments in the following format:

 

 

ITEM DESCRIPTION

CONTRACT LINE ITEMS

 

QUANTITY

 

 

 

 

TOTAL

 

 

 

 

      (g)  If the final invoice does not include the required representation, the Government will reject and return it to the Contractor as an improper invoice for the purposes of the Prompt Payment clause of this contract.  In the event there has been unauthorized use of non-U.S.-flag vessels in the performance of this contract, the Contracting Officer is entitled to equitably adjust the contract, based on the unauthorized use.

 

      (h)  In the award of subcontracts for the types of supplies described in paragraph (b)(2) of this clause, the Contractor shall flow down the requirements of this clause as follows: 

 

              (1)  The Contractor shall insert the substance of this clause, including this paragraph (h), in subcontracts that exceed the simplified acquisition threshold in Part 2 of the Federal Acquisition Regulation.

 

              (2)  The Contractor shall insert the substance of paragraphs (a) through (e) of this clause, and this paragraph (h), in subcontracts that are at or below the simplified acquisition threshold in Part 2 of the Federal Acquisition Regulation.

 

(End of clause)

 

ALTERNATE I (MAR 2000)

As prescribed in 247.573(b)(2), substitute the following paragraph (b) for paragraph (b) of the basic clause:

 

      (b)(1)  The Contractor shall use U.S.-flag vessels when transporting any supplies by sea under this contract.

 

              (2)  A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if the supplies being transported are—

 

                    (i)  Noncommercial items; or

 

                    (ii)  Commercial items that—

 

                            (A)  The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor does not add value to items that it subcontracts for f.o.b. destination shipment);

 

                            (B)  Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in humanitarian or peacekeeping operations (Note:  This contract requires shipment of commercial items in direct support of U.S. military contingency operations, exercises, or forces deployed in humanitarian or peacekeeping operations); or

 

                            (C)  Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance with 10 U.S.C. 2643.

 

ALTERNATE II (MAR 2000)

As prescribed in 247.573(b)(3), substitute the following paragraph (b) for paragraph (b) of the basic clause:

 

      (b)(1)  The Contractor shall use U.S.-flag vessels when transporting any supplies by sea under this contract.

 

              (2)  A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if the supplies being transported are—

 

                    (i)  Noncommercial items; or

 

                    (ii)  Commercial items that—

 

                            (A)  The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor does not add value to items that it subcontracts for f.o.b. destination shipment);

 

                            (B)  Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in humanitarian or peacekeeping operations; or

 

                            (C)  Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance with 10 U.S.C. 2643 (Note:  This contract requires transportation of commissary or exchange cargoes outside of the Defense Transportation System in accordance with 10 U.S.C. 2643).

 

ALTERNATE III (MAY 2002)

As prescribed in 247.573(b)(4), substitute the following paragraph (f) for paragraphs (f), (g), and (h) of the basic clause:

 

      (f)  The Contractor shall insert the substance of this clause, including this paragraph (f), in subcontracts that are for a type of supplies described in paragraph (b)(2) of this clause.

 

252.247-7024  Notification of Transportation of Supplies by Sea.

As prescribed in 247.573(c), use the following clause:

 

NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (MAR 2000)

 

      (a)  The Contractor has indicated by the response to the solicitation provision, Representation of Extent of Transportation by Sea, that it did not anticipate transporting by sea any supplies.  If, however, after the award of this contract, the Contractor learns that supplies, as defined in the Transportation of Supplies by Sea clause of this contract, will be transported by sea, the Contractor—

 

              (1)  Shall notify the Contracting Officer of that fact; and

 

              (2)  Hereby agrees to comply with all the terms and conditions of the Transportation of Supplies by Sea clause of this contract.

 

      (b)  The Contractor shall include this clause, including this paragraph (b), revised as necessary to reflect the relationship of the contracting parties—

 

              (1)  In all subcontracts under this contract, if this contract is a construction contract; or

 

              (2)  If this contract is not a construction contract, in all subcontracts under this contract that are for—

 

                    (i)  Noncommercial items; or

 

                    (ii)  Commercial items that—

 

                            (A)  The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor does not add value to items that it subcontracts for f.o.b. destination shipment);

 

                            (B)  Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in humanitarian or peacekeeping operations; or

 

                            (C)  Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance with 10 U.S.C. 2643.

 

 (End of clause)

 

252.247-7025  Reflagging or Repair Work.

As prescribed in 247.573(d), use the following clause:

 

REFLAGGING OR REPAIR WORK (JUN 2005)

 

      (a)  Definition.  Reflagging or repair work,” as used in this clause, means work performed on a vessel—

 

              (1)  To enable the vessel to meet applicable standards to become a vessel of the United States; or

 

              (2)  To convert the vessel to a more useful military configuration.

 

      (b)  Requirement.  Unless the Secretary of Defense waives this requirement, reflagging or repair work shall be performed in the United States or its outlying areas, if the reflagging or repair work is performed—

 

              (1)  On a vessel for which the Contractor submitted an offer in response to the solicitation for this contract; and

 

              (2)  Prior to acceptance of the vessel by the Government.

 

(End of clause)

 

 

 


Previous Page Next Page Prior Version PDF Version Table of Content DFARS Home Page